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# Atm improvement project

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### Atm improvement project

1. 1. ATM Improvement Project Andrew Phillips, MBA, SSMBB
2. 2. Project Charter• To find ways to improve the development and release of XFS base software.• To measure the cost of poor quality ATM software.• To measure, analysis, improve and control the delivery and implementation of ATM software.
3. 3. Cost of poor quality• A recent study of 4 defects for one of our major customers showed that to correct these defects was 3 millions dollars for an average of \$750,000 per defect.• At a average of a little over 20 defects per month. These defects for this one customer cost a total of 183 million dollars. Even if you calculate that the cost for these defects is highly skewed by 80% the cost for this one customer is still 36.6 million dollars. This customer represents. About 20% of ATM in the US so we are looking at a total cost of over 183 million dollars per year.
4. 4. Current Process
5. 5. Defects Analysis• monthly defects for the past year• 32,6,39,5,35,5,12,32,34,14,13,17• Descriptive Statistics: monthly defects• Variable N N* Mean SE Mean StDev Minimum Q1 Median Q3• monthly defects 12 0 20.33 3.77 13.05 5.00 7.50 15.50 33.50• Variable Maximum• monthly defects 39.00• Goodness-of-Fit Test for Poisson Distribution• Data column: monthly defects• Poisson mean for monthly defects = 20.3333• monthly Poisson Contribution• defects Observed Probability Expected to Chi-Sq• <=17 7 0.272352 3.26822 4.261• 18 - 23 0 0.492305 5.90766 5.908• 24 - 31 0 0.225285 2.70342 2.703• >=32 5 0.010058 0.12070 197.250• N N* DF Chi-Sq P-Value• 12 0 2 210.122 0.000
6. 6. Control Charts
7. 7. Analysis of Data• Chi-Squared test shows the expected data does not fit the observe data. This means that even though the control chart shows a process in control it is not in control.• Goal is to reduce defects by 75%. Reduce the average defects by an average of 20 to an average of 5• This will save \$137,250,00 per year.
8. 8. Improve Process• Increase a system test on top 20% of integration system before base software is released. This should reduce defects by 50%. We can pass this cost on to the customer by reducing the trips to ATM and downtime.• Increase communication by users and developers by having user groups 3-4 times a year. This should reduce defects 10%• Conduct a monthly defect meeting. XFS developers and integrators can communicate fixes. This can be a SharePoint site. This should reduce defects by 15%.
9. 9. New Process
10. 10. Total Annual SavingsTotal cost of defects \$183,000,000.00Total savings \$137,250,000.00Cost of defects after changes \$45,750,000.00Cost on changes 2,500,000.00Total Annual savings \$134,750,000.00
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